.................................................
TradeStalker's
R.B.I. Trader's Update
4/19/2007
(Published Since 1996)
...............................................
Dateline: 6:34 pm eastern time, 4/1/2007
We were looking for early weakness to be a buying opportunity on Thursday, and after the gap down open things reversed after about 18 minutes of trading and the rally was in gear. There was a brief pullback about an hour into the day, but the pullback was bought as the market went to test the Wednesday highs. While the Dow poked its head into new all-time high ground, the SP futures reached 1481.75 while the Nasdaq futures reached the 1853.75 level and the move fizzled. Off that high, a little 123 top developed and the market hit rolled over. The 1479 level was easily broken as the SP futures fell to 1477.50 before bouncing. The bounce failed and the market washed out one more time. The SP futures fell to 1476.25 before reversing and rallying into the close.
The scale in shorts are meant for the SP futures or proxies.The way the futures acted as stocks closed on Friday makes those late day lows very important. We may yet see that 1492-1494 area on the SP futures reached, so if you entered a swing short, the position should be small. IF that 1492-1494 area is reached, and the move fizzles, that would offer a very good reward/ risk setup, using a little more leeway on the stop/loss order than on day trades.
Friday is an option expiration day, so there could be erratic action on Friday. Look for early weakness as a buying opportunity. Thereafter, we will see if the market is rejected again around this week's highs. If it isn't, and there is a breakout on the upside that holds, then we could go for that 1492-1494 area on the SP futures before much trouble sets in.
Sign up for our FREE TRIAL, and you'll get my nightly marketcomment as well as consistently accurate support andresistance levels for the emini SP, Nasdaq, and Russell.http://www.TradeStalker.com
Good Trading,
Mike Reed
Thursday, April 19, 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment